Inflation statistic:
Inflation statistic of US gives us the record of inflation in
United State. The statistic depending on the available data of the
changes in the purchasing power of the mass. According to
Inflationdata, inflation occurs when the general price of goods and
services experience an upward movement. (Tim 7 21, 2010) To
measuring the inflation, there are several ways. Inflation is
measured by placing it the altered price against the various price
index, the most common being the CPI or the Consumer Price Index
(Economy Watch 10 13, 2010) Inflation statistic bring out the
affect of inflation on the US economy by recording all of the
problems that an economy will have to suffers as the result of
price increasing. The inflation rate being expresses with regard to
figures in the statistical report. All of these numeric data reveal
the situation of an economy during an inflationary time. To measure
different aspects of inflation of US, the Department of Labors
Bureau of Labor Statistics (BLS) using numerous indexes.
The Bureau of Labor Statistic statistics that related to
inflation are:+ Consumer Price Index+ Producer Price Indexes+
Import and Export Prices+ Employment Cost Index+ International
Consumer Price Indexes (CPIs)
Brief Explanation of each index: Consumer Price Index (CPI) is a
measure of the average change in prices over time of goods and
services purchased by household (BLS 10 31, 2013). So CPI is
measured basically based on the price of daily want and need
purchase for living by household, such as food, clothing, fuels,
drugs, doctors services and so on. Producer Price Index (PPI) is a
family of indexes that measure the average change over time in the
prices received by domestic producers of goods and services. It is
different than the CPI because it is measured based on the view of
the seller when the CPI measured based on the view of the
purchaser. The different between the sellers and purchasers prices
as a result of taxes, distribution costs and government subsidies.
(BLS 10 31, 2013) Import and Export Price: Import prices are based
on US dollar prices paid by the US importer when export prices
generally either free alongside ship factory or free on board
transaction prices. (BLS 10 31, 2013) The price indexes use are
reweight once a year and using a modified Laspeyres formula to
calculate. Employment Cost Index (ECI) measures the change in the
cost of labor, free from the influence of employment shift among
occupations and industries. The indexes are seasonally adjusted and
based on the survey of employer costs for employee compensation,
compensation trends and the incidence of employer-provided benefits
among workers. (BLS 10 31, 2013) International Consumer Price Index
using data to compares US price with other countries around the
world. It is used to evaluate the competitive position of the US in
increasingly global market. (BLS 10 31, 2013)
Reference:
Tim , McMahon. "InflationData." Last modified 7 21, 2010.
Accessed December 7, 2013.
http://inflationdata.com/articles/2010/07/21/real-definition-inflation/.
"Economy Watch." Last modified 10 13, 2010. Accessed December 9,
2013. http://www.economywatch.com/inflation/statistics.html.
BLS, . United State Department of Labor, "Bureau of Labor
Statistic." Last modified 10 31, 2013. Accessed December 7, 2013.
http://www.bls.gov/news.release/pdf/ximpim.pdf.
